Escrow & Title
Under RESPA, a Loan Estimate must be provided to the borrower within:
A1 business day of application
B3 business days of receiving a loan application✓ Correct
C5 business days of application
D7 business days before closing
Explanation
Under RESPA/TRID rules, lenders must provide the Loan Estimate (LE) to borrowers within 3 business days of receiving a complete loan application, disclosing estimated loan terms and closing costs.
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Key Terms to Know
Closing Costs
Fees and expenses paid by the buyer and/or seller at the closing of a real estate transaction, in addition to the property's purchase price.
ProrationThe division of ongoing property expenses (taxes, HOA dues, rents) between buyer and seller at closing based on their respective days of ownership.
Debt-to-Income Ratio (DTI)A lender's measure of a borrower's monthly debt obligations relative to their gross monthly income, used to evaluate loan eligibility.
Discount PointsPrepaid interest paid to a lender at closing to reduce the mortgage interest rate, with each point equal to 1% of the loan amount.
Math Concepts
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